“Housing continues to be the key player in the economy’s growth story and Master Builders calls on authorities to be careful in implementing so called ‘macroprudential’ measures as they attempt to manage risks attached to rapid house price inflation, predominantly in Sydney,” he said.

“Not only that, but we need a long and strong phase of residential building to address the massive shortfall in new housing – we are not there yet,” Peter Jones said.

“A substantial increase in the new housing supply for owner-occupiers is also what’s needed to tackle housing affordability issues, particularly in the Sydney market. Mooted tax changes, such as increasing the GST is not the answer as this would hit first home buyers and add a $5 billion blow to affordability,” Peter Jones said.